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Mortgage Free in 15 Years..... Hmmmmmmm

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Mortgage Free in 15 Years..... Hmmmmmmm

edited 30 November -1 at 12:00AM in Mortgage-Free Wannabe
22 replies 2.2K views
didabufdidabuf Forumite
106 posts
Part of the Furniture 10 Posts
edited 30 November -1 at 12:00AM in Mortgage-Free Wannabe
Here goes nothing.................
So here I am starting my diary which I thought might help me to become a little better with my money. Over the last couple of weeks I have become slightly addicted to reading other peoples MFW Diaries so I thought it probably wouldn’t help to do one myself.
A little about me, and my families situation. I’m 26, I work part time (I went back to work in April after a year off on maternity) in a very boring and mundane job that I have done for the last 9 ½ years, I’m looking for something new but meeting the money is proving difficult. I have 1 year old triplets and my partner is 25 and is registered disabled with Cystic Fibrosis so there for doesn’t work and is now a stay at home dad taking care of the children while I earn a crust.
My reason for wanting to become mortgage free is because we are hoping to move any time and I know that we won’t have the sort of money we have forever.
At the moment we live in a 2up2down which I bought ½ of off my parents 2 years ago, it turned out to be the best and worst mistake of my life, if I hadn’t bought it we wouldn’t be stuck here but then again because I have my parents have agreed to give me their ½ and put the money into a new bigger house. I’m actually in negative equity as I bought ½ and it has gone down in price and I also borrowed an extra 10k to build an extension which i'll never see again. However the mortgage company have agreed to lend us enough to buy another house and with my parents money from this house we can do it with a £110k mortgage (I currently have a £60k mortgage which stands at about £58k).
We have enough savings to make sure we can pay all fees when the house sells and should still have a bit extra left over to spend a little on the house but we won’t have much else left and so will have to start saving again. However I have decided it’s not going to hurt if I can pay a little extra off the mortgage I have now. I remember when I first got the mortgage and I said to myself I was going to pay extra..... Anyway that never happened because not long after I found out I was pregnant with triplets and any thought of saving went out the window.
I’m just trying to set up some spreadsheets to let me get a hold on my finances and I’ve just moved some money about but once it’s done (hopefully by the end of the week) I’m going to ring up C&G and get a payment set up, (roll on getting a new house and new mortgage because the company I’m going with do it with an online account – yippee).
My aim is to be mortgage free by the time the triplets turn 16 and leave school because proving the government stays as it is that is when our biggest income with disappear (CTC/WTC/CB), I understand I am very lucky to get such money and I don’t take it for granted, which is exactly why I want to put it into buying a house for my family.
Mum to 10year old triplets, just trying to save the pennies.
I'm a saver not a spender.
Mortgage: Feb 20 £74,552, dreaming of paying it off in 5 years.
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Replies

  • Good luck with this didabuf.
    Every little over-payment makes a difference. I spent hours motivating by looking at mortgage calculators!
    But you have to get an online account if you really want to obsess! :D
    PO xx
    :D2010 MFW Challenge No. 112 Mortgage paid in full 27/08/10 I was MF!!!:D
    But now I'm not - (Joint) Mortgage £104704.
    New MFW target £5000 overpayments by 31/12/2105 £400/£5000 = 8%
    SAVINGS TARGET - £25000 by 31/12/2015 £13643/£25000 = 55%
    No 17 Lewis Lane
  • summerdaysummerday Forumite
    1.4K posts
    Wow, baby triplets! Life must be very busy for you.

    Good luck with your mission and keep us posted!
    Yesterday is today's memories, tomorrow is today's dreams :)
  • didabufdidabuf Forumite
    106 posts
    Part of the Furniture 10 Posts
    A week on and I’m all ready to make my first overpayment, however it’s going to have to wait until Thursday as I am at work till then and won’t get chance when I get home from work.

    My plan is to make a one off OP of £300 and then add about an extra £150 (or just short of I currently pay £354 so going to make it up to £500) from the next payment date which is pay day every month.

    I could afford more but we need to save some money for house renovations if and when we move!

    This week I have been taking a serious look into what we spend.
    I only changed my gas/electric back in February so know that they are fine.
    Internet couldn’t change just yet as was a 12 month contract, however I don’t think there is any saving to be had there when it comes up for renewal.
    Sky is as cheap as we can get it, and as we rarely go out don’t really drink and don’t smoke this is our pleasure.
    We already get CT discount and the water bill is paid till October so I think I’m doing quite well.
    Just put a claim in on TCB for my AA insurance for £26 which all of a sudden changed to £0 L hopefully they’ll get that sorted out, and also put a mothercare claim is because it didn’t track when I bought some nappies/wipes yesterday.

    Also this week I have done an online spending diary www.spendingdiary.com and have found it invaluable, I am however extremely shocked to see how much I have spent on stuff this week.
    £50 on nappies/wipes... actually really cheap so was pleased with an offer and some codes I saw on here actually.
    Our biggest spend was food, even though there is a distinct lack of it in our house. A few loafs of bread and some sandwich meat, some milk, lots of fruit and yoghurts for the triplets, some reduced stewing steak, some rice puddings and some very cheap cakes for OH (depressing as it is, his diet actually needs to consist of high fat food to keep his health well as meat on his bones keep the bugs away) and a few other essential items ended up costing us £70, I’m totally shocked at how it could possibly of cost this much and I am totally confused and wondering how I can get this amount down, as we really need everything I bought, a good few of the items I bought were value ranges and also bought for cheap shops like Home Bargains.

    So this week I am going to try and use up the few things we have in the freezer and cupboards and try to get that amount down. I’ve made a meal plan for the week for dinners and tea and I plan to use as much of what we have in as I can.
    Obviously I need to buy milk, bread, fruit and snacks for the babies but hopefully this new cheaper way of living will work and maybe along the way I might even be able to lose a few lbs of baby weight that’s been hanging around longer then it’s been welcome.

    Here goes week two; fingers crossed its better then week one.......
    Mum to 10year old triplets, just trying to save the pennies.
    I'm a saver not a spender.
    Mortgage: Feb 20 £74,552, dreaming of paying it off in 5 years.
  • newgirlynewgirly Forumite
    7.7K posts
    Tenth Anniversary 1,000 Posts Name Dropper Photogenic
    ✭✭✭✭
    Hello, welcome to the mf board. Its a good time to start trying to save the pennies when the kids are little and not too demanding (financially of course!), I'm sure you are short on time with triplets but take a look at the oldstyle boards, there are lots of cheap very tasty receipes, maybe make up a couple of batches of biscuits or cakes once a week, they are so much cheaper than shop bought.

    Harder to save with clothes for triplets though, i had the same problem as i had DD just turned 3 then twin boys, so no hand me downs there either, (although I do remember ds2 wearing a pink babygrow of dd's one night when i had run out of clean ones!)
    Anyway , good luck.
    MFW 38

    2020 £14,466.48 / £18,000
  • didabufdidabuf Forumite
    106 posts
    Part of the Furniture 10 Posts
    EEEEKKKKKK here goes, i finally got round to calling up C&G and made the first step in becoming MF, i made a one off payment of £300 as we had a few quid lying around that we could use without it effecting the savings we have for moving. I also got a regular over payment done so now my monthly mortgage payment has gone up from £354 too £500.
    Im so happy, it makes me feel really positive.

    Now i just need to work on the Saving money thing..... hmmmmmm 1st off i need to work out how i can get my weekly food budget down from £80 cos its far too much, and this week i have been so good with stuff ive bought!

    anyway the triplets are screaming for their tea so i suppose i better go and feed them, back later :)
    Mum to 10year old triplets, just trying to save the pennies.
    I'm a saver not a spender.
    Mortgage: Feb 20 £74,552, dreaming of paying it off in 5 years.
  • Important update! We have recently reviewed and updated our Forum Rules and FAQs. Please take the time to familiarise yourself with the latest version.
  • SAMMYE_2SAMMYE_2 Forumite
    244 posts
    Awww bless ya.

    Good luck with the overpaying. It is fun and a sense of massive comfort.

    Dont forget the more you overpay the cheaper the mortgage which means you will have even more money to overpay and so on and so on.....

    As the years go on the mortgage will get lower and your wages / benefits will increase so it will get easier and easier! :D
    [STRIKE]£106,200[/STRIKE] mortgage with 5% deposit 2 years ago on 6.99% 04/06/08 :eek:
    Overpaying the max 10% per year for the next 2 years until July 2013 when I can remortgage and should be able to get down to 55% LTV.
    Overpaid 10% £10,619.87 Dec 2010 & 10% £9,475 Aug 2011
    Mortgage was £690 now £560 :D
    Currently £85,203 - 71% LTV 26/08/11
  • Sepa74Sepa74 Forumite
    962 posts
    Wow, Didabuf, I really admire you for what you're doing - poorly OH and TRIPLETS!!!! Amazing!

    I would suggest you do a SOA - this is the one most people use http://www.makesenseofcards.co.uk/soacalc.html as that triggers lots of useful advice.

    With regards to the food budget, I can only suggest getting the cheapest cuts of meat, which tend to be fatty and gloopy which sounds like it will be good for your OH. A slow cooker can be a great investment as there is minimal effort involved in making really tasty hearty stews, and they are very energy efficient (much more so than an oven).

    Also pad out meals with loads of beans and lentils eg chick peas, kidney beans, butter beans etc. They're really cheap and will still put meat on your OH's bones!
    Borrowed £150,000 in an offset tracker mortgage in May 2007 - MFD May 2041 (67)

    Jan 2012 - £125,620.02 / 2,913.87 / Nov 2032 (58) :beer:
    Apr 2012 - £122,901.88 / 3,170.91 / Jul 2032 (58)
    Jul 2012 - £122, 589.02 / 3,507.99 / Sept 2032 (58)
    Oct 2012 - £120,476.31 / 3,889.42 / July 2032 (58)
  • Good luck DAB!

    We sold 3 yrs ago, spent 2 yrs looking and bought again 1 yr ago. We have started over-paying in the last 4 months and have increased form a £100 overpayment between us to £300 between us and we will also be mortgage free in 15 yrs!

    A work mate said "you are planning long term" but it is so nice to feel you can control the end of a long term plan!
    Give yourself a Chistmas bonus £14 a week!
    Total so far £28
  • didabufdidabuf Forumite
    106 posts
    Part of the Furniture 10 Posts
    O.K. so the diary thing went out the window but that’s probably because I actually don’t have anything exciting to say.
    So now i’m just going to use this to update when something happens more for my own personal records.

    Since starting this journey I’m quite proud of how far I’ve got, just a shame we haven’t managed to sell the house.

    Since starting the diary / overpaying back in august I’ve continued to over pay the £145 every month. And this month I just called up and paid off the sub account – which was about £500, so my monthly overpayment will increase by 3.10 now – over the next 21 years that knocks off 5 months which I think is pretty impressive.

    My overpayment s to date has knocked off 8 months so far.

    However the savings took a massive blow in November when our car went pop, well not literally but pretty much, and after lots of debating whether to get it fixed or not we decided to try and get it fixed at a cost of £1000, however 2 weeks later the garage decided it wasn’t fixable but they could bodge it enough for us to get rid – so £600 later we took it to a lovely big dealership and let them offer us £2500 in exchange for a shiny new (ish) 08plate Citroen c4 grand Picasso
    However nice and new and shiny it is it also wiped out £10,000 savings.

    Luckily I suppose we haven’t managed to see the house – plenty of interest but it’s still on the market
    So were just trying to build the savings up – well I am Mr Didabuf is saving up to get his Jet Ski and land rover re sprayed.
    However we have been selling a few bits on eBay and it’s been relatively quite so far this year so we have managed to get a big back in the savings pot.

    I’ve been trying to be a bit frugal – not really that easy when you have triplets that eat a lot and a partner that likes to live off cakes and crisps but i’m still shopping around for food – well Mr Ts & Mr As, unfortunately I cant get to anywhere cheaper, well not without it costing more in fuel but i’m quite good at keeping the food budget in check, so far this year vie managed to get the weekly budget down from about £130 to about £100 so I’m quite pleased there.

    I’m going to so a SOA when I get chance, but i'm not sure there will be much savings to be had because I already look around for everything
    Mum to 10year old triplets, just trying to save the pennies.
    I'm a saver not a spender.
    Mortgage: Feb 20 £74,552, dreaming of paying it off in 5 years.
  • didabufdidabuf Forumite
    106 posts
    Part of the Furniture 10 Posts

    Household Information

    Number of adults in household........... 2
    Number of children in household......... 3
    Number of cars owned.................... 2

    Monthly Income Details
    Monthly income after tax................ 613
    Partners monthly income after tax....... 804
    Benefits................................ 980
    Total monthly income.................... 2397

    Monthly Expense Details
    Mortgage................................ 500
    Council tax............................. 25
    Electricity............................. 30
    Gas..................................... 23
    Water rates............................. 100 (paid 6 monthly)
    Mobile phone............................ 20 (both mobiles – PAYG)
    TV Licence.............................. 12.37
    Satellite/Cable TV...................... 23.5 – phone and broadband we very rarely go out so this is our luxury
    Internet Services....................... 23 - 25
    Groceries etc. ......................... 450
    Clothing................................ 20 – we tend to use birthday money for these
    Diesel........................... 100
    Road tax................................ 15
    Car Insurance........................... 1000 – should be less this year as my insurance stung me on my new car – but I look around for the best deal
    Car maintenance (including MOT)......... we don’t put money away for this we just pay as as when it needs work – but we do the majority of work ourselves so after MOTs (£90) its mainly just parts
    Pet insurance/vet bills................. £50 a year touch wood the dogs haven’t cost is much yet
    Buildings & Contents insurance.................. 170 – I only pay 2/3 as my mum pays the rest
    Life assurance ......................... 13
    Christmas Presents £30 a month saving for xmas
    Birthday presents £20 a month on average – not many to buy for
    Haircuts................................ 50 every 3 months + £5 every 6 weeks for the boy
    Entertainment........................... £25 a month for take aways / eating out
    £10 a month average on going out
    Summer time - £300 jet ski launch + petrol
    £120 a year jet ski insurance

    its a bit lame because im not very good at thinking about where our money goes, i dont use different pots for different things either really.
    Mum to 10year old triplets, just trying to save the pennies.
    I'm a saver not a spender.
    Mortgage: Feb 20 £74,552, dreaming of paying it off in 5 years.
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